Movado Group (“Movado”) (NYSE:MOV), a manufacturer and distributor of watches and jewelry based in New Jersey, announced that it reversed course from the previous year to record a loss from continuing operations of $2.1 million, or 8 cents per diluted share, for fiscal 2011.
In the second quarter of 2010, company profits from continuing operations totalled $2.3 million, or 9 cents per diluted share. Net loss for the second quarter of 2010, which includes results from the company’s boutique closures, was $19.8 million, or 80 cents per share.
According to Yahoo Finance, analysts on average expected the company to post a loss of one cent per diluted share.
The company’s share price plunged 8.6% to trade at $9.85.
For the first half of fiscal 2011, including the effects of the boutique closures, the company recorded a net loss of $30.5 million, or $1.23 per diluted share, on revenues of $158.2 million compared to a net loss of of $10.2 million, or 42 cents per diluted share, on revenues of $144.2 million for the same period the prior year. Loss from continuing operations for the first half of fiscal 2011 totalled $6.8 million, or 27 cents per share.
Efraim Grinberg, CEO of Movado Group, stated, "We remain committed to executing our plan to return our company to profitability. We are continuing to experience improvements in retail sell through of our products, particularly in our licensed brands and our iconic Movado brand. As we return our focus to our wholesale business, we are pleased that we successfully completed the closure of our retail boutiques as planned.”
The company anticipates its fiscal 2011 results from continuing operations will range from a loss of $3 million, or ($0.12) per share, to profit of $2 million, or $0.08 per share. The guidance assumes a sales increase of 12% to 15% for the year and increased marketing expenses.
Disclosure: no position